In light of diminishing geopolitical tensions, the French market exhibited weakness on Friday morning, as investors adopted a cautious stance in response to regional PMI readings. The benchmark CAC 40 experienced a decline of 41.04 points, reflecting a decrease of 0.52%, settling at 8,107.85 shortly before noon.

• Bouygues, Saint Gobain, ArcelorMittal, Stellantis, Societe Generale, Eiffage, Sanofi, Legrand, Michelin, Danone, LVMH, and Hermes International experienced declines ranging from 1 to 2%.
• Kering, Vinci, Schneider Electric, Accor, Bureau Veritas, STMicroElectronics, Renault, and EssilorLuxottica exhibited a lackluster performance in trading.
• Thales experienced an increase of 1.8%.
• Safran experienced an increase of just over 1%, while TotalEnergies saw a decline of nearly 1%.
• Credit Agricole and Veolia Environment recorded slight increases.

Survey results indicated that the French private sector faced a contraction in January, marking the first decline in three months, as clients exhibited reluctance to place orders due to the persistent political deadlock surrounding the nation’s fiscal plans.

The HCOB flash composite output index decreased to 48.6 in January, down from 50.0 in December. The index was projected by economists to increase to 50.1. The index has consistently stayed beneath the no-change threshold for the first time since October of the previous year. The services PMI experienced an unanticipated decline, falling to a nine-month low of 47.9 in January, down from 50.1 in the preceding month. The score registered at 50.3. The factory PMI increased to 51.0, up from 50.7 in the previous month. The index was projected to decline to 50.4 in January.

A report indicated that France’s manufacturing business climate indicator increased to 105 in January 2026, up from 102 in December 2025. This figure surpassed forecasts of 101 and remained above its long-term average of 100 for the second consecutive month. This represented the peak level since July 2022.